Zara fails to protect labourers from modern-day slavery practices

Despite Zara being one of best known and best selling fashion retailers in
the Western hemisphere, the label has reportedly failed to protect its most
vulnerable employees – the garment workers – from modern day slavery
practises. According to the latest findings from Brazilian labour
inspector, published by Repórter Brasil and the Centre for Research on
Multinational Corporations (SOMO) Zara lacks sufficient transparency within
its supply chain which has lead to a gross misconduct of labour rights.

Named
the report brings to light a number of violations and issued raised by Zara and its business model.
Over the past nine months labour inspectors have been investigating Zara’s
supply chain in Brazil and found that many of the orders end up at illegal
workshops, where immigrants from Bolivia and Peru are forced to live and
work under inhumane conditions. Sixty-seven suppliers were checked and
found to be engaging in countless labour rights violations.

Garment workers were forced to work excessively long hours without breaks,
use dangerous machinery and chemicals without adequate training and
protection and were paid far less than the minimum wage. “The misconduct of
Zara is very serious and demands strict punishment,” commented Luiz Antonio
de Mederios, Regional Superintendent of Labour and Trade in Sao Paulo to
Repórter Brasil.

Zara’s business model cannot guarantee decent production

“The study has just been completed,” commented inspector Renato Bignami to
de Volkskrant. “We are now evaluating whether we can impose a fine against
Zara again.” The fine could be as high as 7.5 million euros. Zara comes
forward since the report’s publication and disagrees with its findings as
well as the inspector’s evaluation. A spokesperson from Inditex told the
newspaper they felt “their report is full of inconsistencies,” and the
Spanish company is currently preparing take legal action against
the report’s publication.

This is not the first time that Zara, the leading ‘fast-fashion’ brand from
Spanish conglomerate Inditex, has been accused of breaching labour rights.
In 2011, Brazilian federal government inspectors discovered 15 immigrants
working and living under “deplorable conditions” in two small workshops in
São Paulo, Brazil. Workers were forced to work up to 16 hours in one day
and were restricted in their freedom of movement. The inspectors stated the
conditions in which the workshops were found were “analogous to slavery.”
Following the controversial discovery Zara Brazil was fined and Inditex
vowed to improve CSR conditions by monitoring its supply chain more
closely.

However, SOMO and Repórter Brasil argue that Zara Brazil, a wholly owned
subsidiary through which Inditex operates through, has not been living up
to the agreements made with Brazilian authorities and has exposed the
fashion label’s legal strategy to avoid liability for the Brazilian labour
rights abuses. After the inspections of 2011, Zara Brazil agreed with
Brazilian authorities to carry out more frequent and through supplier
inspections. But the report shows that the fashion label is still lacking
in monitoring its production chain sufficiently.

Zara accused of ‘irresponsible legal strategy’

Since the inspections of 2011, Zara Brazil has filed a lawsuit against the
government, seeking the annulment of the fines issued. The subsidiary of
Inditex maintains that “it would never consent to any exploitation of
labour in a situation analogous to slavery”, but that “social
responsibility must be distinguished from legal responsibility.” The
fashion label stresses it cannot be punished for any unlawful outsourcing
carried out by its suppliers.

“The fact is that the alleged criminal offences pointed out by the
inspection report refer to third-party conduct that is not to be confused
with Zara’s,” argues the company. The Regional Labour Court of São Paulo
dismissed the lawsuit filed by Zara Brazil in April, 2014. At the time Raúl
Estradera, spokesman for Inditex said: “With all due respect to the
decision, we understand that our arguments were not taken into
consideration and we had no chance to defend ourselves properly.” Zara
Brazil appealed the decision and is currently awaiting a new trial.

Low
prices & fast deliveries of fashion brands incompatible with decent
working conditions http://t.co/m2mq6O1LKB
pic.twitter.com/cxkXUYXh6c

—
SOMO (@SOMO) May
11, 2015

SOMO and Repórter Brasil argue the legal strategy is inconsistent with
Zara’s corporate social responsibility policy (CSR), as parent company
Inditex promises to its global clients around the world that its products
are manufactured under decent conditions, but in court states it cannot
offer any guarantees. “I think it’s true that it is impossible for Zara to
control its own supply chain,” commented Mariette van Huijstee, researcher
at SOMO to de Volkskrant. “Which all comes down to its business model. The
clothing needs land in its stores as quickly and as cheaply as possible.
Which inevitably leads to Zara’s contractors being obliged to outsource
part of the production. Zara is not always informed of the
these illegal sublets.”

Zara Brazil is also fighting against being listed on the country’s
so-called ‘dirty list’ of Brazil’s labour and employment ministry, a
registry of companies which have been found to employ workers in inhumane
conditions. The fashion label has countered this by filing for a law suit
which states the list is unconstitutional and is trying to abolish the
list. “Zara’s attitude shows that self-regulation and binding agreements
regarding corporate social responsibility are insufficient to counter human
rights abuses within the garment industry,” adds Van Huijstee. “Supply
chain responsibility should therefore be embedded in the law.”